Gartman Remains Bearish On Oil

On June 22, Citi called the bottom in oil to the day, when in a not too subtly titled note it said "Here Comes The V-Shaped Rebound In Oil." Since then, both WTI and Brent had risen for 8 trading days in a row, the longest stretch since February 2012. Meanwhile, surprisingly not too many, Gartman went short and, in his latest note, he explained the he remains bearish. End result: the oil rally just closed higher for 9 consecutive days.

Below is the relevant excerpt from Gartman's latest note, according to which oil bears may want to keep a low profile at least until Gartman does what he does best, and once again succumbs to price momentum.

CRUDE OIL PRICES ARE RATHER BRISKLY HIGHER and we shall continue to view this as nothing more than a much needed, long  over-due technical correction in what is and shall continue to be a long term bear market. Supplies are rising; OPEC’s power is diminishing; the US has become the “swing producer” and fracking has only been utilized to any true great extent here in the US but will be exported to Russia, to China, to Africa, to the OPEC nations, to Canada, to Australia et al.


The crude oil bulls are making much of the fact that the rig count, for oil rigs, here in the US fell by 2 last week… the first such decline in nearly 6 months. There are now 756 rigs drilling for oil in the US, but  there was one more rig at work in the nat-gas arena than there had been the week previous, so that the total rig count for crude + nat-gas was 940, down from 941. We make much less of this decline than others might, for the simple fact of the matter is that horizontal drilling rigs are far, far more efficient than are regular, single directional rigs. But we shall grant that for the moment, this decline in the rig-count gives those who are long something of a respite. It shall be short lived.



WTI is making its way back toward “The Box” marking the 50-62% retracement of the break that began in late- May and ended… amidst near panic on the part of the crude oil market bulls… ten trading sessions ago. It has been our intention all along to await the opportunity to sell crude oil short on protracted rally and we are getting that rally as we write. We can be patient a while longer.

Gartman may be patient, but the same can hardly be said of bears, who are eagerly waiting for the day bearish Gartman once again throws in the towel.


BandGap Mon, 07/03/2017 - 13:19 Permalink

Gartman, the gift that keeps on giving.Neon sign for the state of our civilization that this man invests for others. Who is the stupid one here?Gonna buy more ammo today.

AlexCharting Mon, 07/03/2017 - 13:19 Permalink

This whole ZH Gartman bashing is soooooo lame :P Especially given the irony that many Tylers write articles about how good it is to invest in gold... how are your gold investments doing?

BrigstockBoy Mon, 07/03/2017 - 13:21 Permalink

Anyone here remember Sybil, a 1976 film about a woman with Multiple Personality Disorder? Not sure why it sprang to mind after reading about Gartman yet again but Sybil was said to have had sixteen different personalties.

Rodders75 Mon, 07/03/2017 - 13:30 Permalink

"we shall grant that""It has been our intention to await...""It shall be short lived"Does any normal person talk like this? I don't normally join feeding frenzies on people, but I make the exception for this totally pompous twat. 

Horse Pizzle (not verified) Mon, 07/03/2017 - 13:35 Permalink

Frack any depleted well and you get more oil than you did the first time. We got a hundred years of holes dug.

Seasmoke Mon, 07/03/2017 - 13:38 Permalink

ZeroHedge is the bully who picks on the only guy who has been more wrong. 7 years of an awful track record ZeroHedge of meaningless stories. And I fell for it. No big deal. I will hold my physical Gold until paper price goes to zero. But I've come to realize it's nothing more than a buy and hold of which I make fun of everyone else who holds and buy stocks. Back up the truck. My ass. Down another $22. So Today I feel like is a perfect day to stop my addiction with ZeroHedge and stop posting on ZeroHedge. Take care everybody. Time for me to live again. ZerogHedge is no longer worth my time. I will make 4th of July my Independece from ZeroHedge. Good Luck to everyone here. I really did like the company but got tired of being played with for 7 years.

Yen Cross Mon, 07/03/2017 - 13:44 Permalink

   Crap--- I was getting ready to short CL again.  P.S.  I totally feel for you Seasmoke. I've enjoyed your posts over the years, and hope you don't stay away for too long. Something tells me things are about to get interesting.

Zepper Mon, 07/03/2017 - 14:26 Permalink

He would be spot on but he does not realize the disgustingness of this industry. Fundamentals have not changed since the drop to 42. In fact nothing has changed. Yet here we are climbing back up to 50 for no apparent reason what so ever. Oil glut still there, Wells capped and ready to go online was just a few thousand now tens of thousands.  #1 commodity in the world... #1 manipulated commodity in the world.  To many state, corporate, and syndicate(OPEC) players pumping up the price. Not to mention the central banks and their financial arms.

Ink Pusher Mon, 07/03/2017 - 14:43 Permalink

Don't worry boys and girls, the coming 'great Aramco sale' will be the catalyst... keep in mind what's coming will be indeed 'short lived' the same as every flawed inflationary initiative before it.pump and pump and pump and dump. la-dee-da....

KimAsa Mon, 07/03/2017 - 14:57 Permalink

As soon as the world realizes that Ghawar is about 80% seawater and 20% light sweet crude (and that's a generous estimate), then bearish Gartman will be dropping a full quart of 10w30 smack dab on his foot and it's gonna hurt like hell. Fracking and other alternative ways of extraction is NOT going to make anybody energy independent. It's just too cost prohibitive. Enjoy low oil prices while they last.

Long bikes.